Bob is a monopolist producing cars. The average and marginal cost curves and average and marginal revenue curves for her product are given as follows:
AC = Q + (100/Q) MC = 2Q P= 30 - (Q/2) MR = 30 - Q
Suppose that the regulatory agency sets your price where demand equals average cost. How much profit will Bob make?
he will lose money and will go out of business.
he will break even.
he will make a profit.
none of the above